Creative Destruction

The famous Austrian Josepth Schumpeter coined the phrase "creative destruction" to describe a process of radical transformation that accompanies radical innovation.

An example would be the spread of the internet that destroyed the value of old-line established companies.

Destruction is sometimes a violent prospect, but out of any destruction comes green grass, a clean slate, hope, vision, planning, and eventual building.

Living in the automotive State of Michigan, and having a different view of what happened to the auto companies than the majority of the nation's citizens may have, it is still clear that the auto industry has been radically transformed into a much leaner industry which will be much more competitive in the future.

However, it may seem a little hypocritical for me to now make the next statement:

Is there a limit to how far the government should go to bailout the banks, auto companies, local governments, and other entities?

At what point should failure be a true option, where something better can be put in place through constructive confrontation of new ideas and methods?

From the street level it seems like people are getting used to the fact that things are bad and are getting their heads and hands around their personal issues to deal with these problems. Future generations might become more financially responsible, conservative in their spending, and sow seeds for greater growth in the future.

But if the old habits and structures are allowed to stay in place, changing them for the better will be much harder, won't it?